An Explanation For The High Foreign Direct Investment In China

The FDI is high because Chinese are incorporating holding companies abroad which are subsequently used to own newly PRC-incorporated companies. This gives the illusion of foreign investment. This set-up should be widely advertised and promoted to even more Chinese businessmen by the US and the EU so that the Chinese government receives fewer tax revenues in the future. In addition, the US and the EU should impose high tariffs on Chinese products and services and stop Chinese immigration since they don't have honesty, integrity or morality.